15th September 2022, Kathmandu
Foreign direct investment in Nepal has increased by 14.8 percent in one year. According to the survey on foreign direct investment conducted by Nepal Rastra Bank Economic Research Department, foreign direct investment has reached 2 trillion 27 billion 95 billion.
The share of paid-up capital is 53.9 percent, reserves are 31.6 percent, and loans are 14.5 percent, according to the Central Bank. As the share of paid-up capital has increased by 13.7 percent, the total foreign direct investment has increased in the survey report.
According to the data till the end of June 2078, it is mentioned in the survey that most foreign direct investment came from India.
There are 55 foreign direct investments in Nepal. Which, the highest direct foreign investment from India is 75.81 billion followed by 33 billion from China, 16.48 billion from Ireland, 15.48 billion from Singapore, and 14.51 billion from Saint Kitts and Nevis. According to the data, India’s share in total foreign direct investment is 33.3 percent while China’s share is 14.5 percent.
Similarly, another South Asian country, Bangladesh, is also among the top 10 countries receiving foreign direct investment in Nepal. 6 billion 383.5 million direct foreign investment has come to Nepal from Bangladesh. Which is 2.8 percent of the total foreign direct investment.
Foreign investment is concentrated in the industrial sector and banks, and insurance Of the foreign direct investment in Nepal, 60.5 percent is in the industrial sector and 39.4 percent is in the service sector. Under the industrial sector, 30.8 percent of foreign investment is in the hydropower sector and 29.5 percent in the manufacturing sector. Similarly, 26.9 percent of the total FDI is in banks and financial institutions, and insurance companies under the services sector.
Apart from this, there is direct foreign investment in the fields of education, construction, etc., but it is only in negligible amount. It is mentioned that in the financial year 2077/78, the capacity utilization of manufacturing companies operated by foreign investment is 64.9 percent. It is mentioned in the survey report that the rate of profit is about 14.7 percent.
In 2021, South Asian countries will receive a total of USD 51 billion in foreign direct investment, while India has received the highest foreign direct investment of USD 44.7 billion. Similarly, 2 billion 900 million dollars of direct foreign investment has come to Bangladesh, while 2 billion 100 million dollars of foreign direct investment has also come to Pakistan.
Similarly, while Sri Lanka received 600 million dollars of foreign direct investment, Nepal received 200 million dollars of foreign direct investment, according to the data of the National Bank.
In 2021, South Asian countries will receive a total of USD 51 billion in foreign direct investment, while India has received the highest foreign direct investment of USD 44.7 billion. Similarly, 2 billion 900 million dollars of direct foreign investment has come to Bangladesh, while 2 billion 100 million dollars of foreign direct investment has also come to Pakistan.
Similarly, while Sri Lanka received 600 million dollars of foreign direct investment, Nepal received 200 million dollars of foreign direct investment, according to the data of the National Bank.
